Home sales increase; median price falls

Sales of single-family homes in Massachusetts shot up by about 17 percent in October when compared to the same month last year, but the median price continued to slide down.

Staff reports

Sales of single-family homes in Massachusetts shot up by about 17 percent in October when compared to the same month last year, but the median price continued to slide down.

The Massachusetts Association of Realtors and The Warren Group in reports released Tuesday attributed the fourth consecutive month of increased home sales when compared year to year to the federal first-time homebuyer tax credit that was set to expire at the end of this month, but has since been extended and expanded.

Officials with both organizations say the increased sales, coupled with extension of the credit, is evidence that the housing market is recovering.

The median price of a single-family home dropped nearly 3 percent when compared to October 2008 according to both organizations.